Flexible pricing is critical to profitability, especially in today’s competitive trading environment, but can quickly run away with itself, leading to a plethora of special pricing and promotions that becomes impossible to manage. A good IT solution will have specific functionality to make the task more manageable so you can operate competitively yet profitably.
Look out for:
Targeting – You should be able to operate a range of list prices for different sales categories, targeted at individual customers or groups of customers to reflect the business they do with you.
Ease of use – Pricing should be easy to review and update so you can react to market conditions and supplier costs and compare different options based on different margins.
Automation – Most prices should be calculated automatically, using preset target margins, cost plus calculations or discounts from list price, otherwise the task will become unmanageable.
Promotions – Simple price and volume promotions, linked products, BOGOFs, cheapest free, etc, as well as short term promotional activities by category or product. Again, all should be targetable with results feedback so success can be evaluated.
Contract Pricing – Ability to mix in contract prices that do not change with usual price list activity.
Loyalty Schemes – Multiple schemes, targeted to deliver specific business benefits rather than blanket rewards.
Reporting – Clear reporting on who’s bought what and margins achieved to influence future pricing, target promotions and develop loyalty systems.